Sales Growth for Foodservice Packaging Providers

A survey was conducted by the Foodservice Packaging Institute which showed that foodservice packaging converters, machinery suppliers, foodservice distributors and operators expect sales growth this year. FPI members expect a huge potential for growth in the fast casual and quick service chain restaurants. Manufacturers also expect to grow their companies by expanding current facilities and constructing new ones. The members do however have some concerns for factors that could affect industry growth.

Here are five common challenges facing the industry:

  1. Increasing raw material costs.
  2. Margin compression.
  3. Public perception of packaging or foodservice packaging as “waste.”
  4. Global economic recession / recovery.
  5. Mergers and acquisitions

To read more statistics about the growth in volume for foodservice operators click here

 

Ancient Grains Driving Profits in Fast Casual Enterprises

Ancient grain products such as kamut, quinoa, amaranth, chia and hemp amongst others have been rapidly re-entering the consumer’s diet over the past few years. These grains are not only attractive to the health-conscious consumer but have been proven to drive profits for restaurants. Integrating ancient grains into a menu will help add variety but most importantly will lower food costs. Aside from adding great texture and flavor, grains are also easy to maintain and can be served at breakfast, lunch or dinner.

The New York Restaurant Association surveyed 1,300 professional chefs (all members of the American Culinary Federation) to compile the 2014 Culinary Forecast and ancient grains came up high on the list of new trends to expect. According to Innova Market Insights, the launch of products containing quinoa rose nearly 50% over the past year, and 500% over the past five years. This massive increase proves that consumers are showing significantly more interest in these types of grains.

Quinoa is one of the fastest growing grains to appear on menus in everything from salads to soups to beverages and even to sweets. Quinoa is naturally wheat and gluten free as well as being low in carbohydrates, high in fiber and packed with different vitamins and minerals. Quinoa is also a great source of protein since it is a complete protein, containing the full nine amino acids. It is no wonder that as consumers become more health conscious, these nutritionally valuable grains become higher in demand.

Grains are no longer found solely in health stores but have made their way into the mainstream. It is now common to find quinoa cookies and chia seed bars at the check out counter of most coffee shops, prepared food markets and fast casual establishments. Apart from appearing on menus in restaurants they have also become attractive to the processed foods market.

The integration of grain products into menus is not only attractive to consumers but is also extremely beneficial to the commercial buyer. Aside from adding great flavors and textures they also have a very simple and fast preparation. Most importantly however, is the fact that grains are cheap to purchase, shelf stable, easy to store, and easy to hold (cold/hot/ambient). The fastest growing price on any food item is on meat, so if an enterprise is able to use small amounts of meat in a grain dish or can substitute it all together on the menu, it can really help get a better handle on food costs.

Grains also offer amazing versatility as they can be incorporated into the enterprise’s menu as a starter, main, or side and can be served in any of the day parts. Of course they also are a great option for dessert and mid meal snacks. Grains add variety and provide alternatives to more traditional options. For instance, here are some examples of how grains are being used at these well-known reputable enterprises:

  • Pret A Manger offers a steel-cut oatmeal breakfast option but also offers five-grain oatmeal with quinoa, flax seeds, amaranth and chia seeds.
  • Panera Bread has made way on its menu for orzo, quinoa and wheat berries among other grains. Gluten-free diners are glad to find a hearty substantive grain dish (such as barley or buckwheat noodles) as an alternative to otherwise starchy dishes such as pasta or rice.
  • Chains like Just Salad, Hale & Hearty and Chop’t are incorporating quinoa and wheat berries to add bulk to their already existing items.
  • Juice Generation offers a chia seed tapioca as a guilt free alternative to a high calorie dessert pudding.

Consumer interest in nutrition will only continue to grow, and grains are an easy product to incorporate into your product mix to attract health conscious diners in order to boost sales.

 

Halal Guys to become Middle Eastern Chipotle

The street vendor Halal Guys, whose original location can be found on 53rd and 6th Avenue in Midtown, will soon be turning its cart into a restaurant chain. Halal Guys just signed a deal with the franchise consulting firm Fransmart. The firm hopes to have outposts in Canada, Los Angeles, along the East Coast and in the Middle East within a year’s time. In the next five years it also hopes to include more US locations as well as some in Europe. Fransmart is the firm responsible for the franchising of Five Guys Burgers and Fries and Qdoba. The chief executive officer of Fransmart, Dan Rowe, has stated that he believes this deal could turn Halal Guys into “the Chipotle of Middle Eastern food.”

Two other locations within New York City were already in the works before this deal was finalized; one in the Lower East Side and one near Columbia University. These locations will operate independently of Fransmart. The other five carts around the city will also continue to stay open for business.

To read more about the franchising of Halal Guys click here

New App Means New Competition for Fast Casual

In an effort to add more emphasis on speed and hospitality, BJ’s Restaurant and Brewhouse launched an app last Tuesday that allows diners to place their orders before arriving at the restaurant. BJ’s Chief Executive Gregory Trojan believes that being hospitable is the most important task for a waiter. The casual-dining restaurant chain’s goal in launching the app is to shift the wait staff’s duties to enable them to focus on being more conscientious of the customer.

The customer is placed on the wait list once they have ordered via the app, eliminating the need to wait at the host stand upon arriving at the restaurant. The kitchen fires the meal once the customer is seated to ensure the food is hot when it arrives at the table. The app also offers a mobile payment option at the end of the meal eliminating the need to wait for the check.Trojan assures that the app will not mean less waiters but simply that the waiters will be removed from the ordering process.

The increase in speed and service will be an added draw to the customer which will enable BJ’s to better compete with fast casual establishments. Panera Bread and McDonald’s have also been experimenting with different ways to include the customer to streamline the ordering process.

 

To read more about the app launch and what it means for the future click here

 

Breaking into the Breakfast Business

Breakfast is probably one of the more routinized aspects of our daily lives. According to CivicScience.Inc, 61% of consumers eat breakfast at home, but rather than attempting to convert this group, establishments should jump on the opportunity to offer breakfast-on-the-go. Starbucks and McDonald’s have mastered this area, especially given the convenience of the drive-thru which fast casual establishments simply do not have. Therefore, in order to be successful when launching into a breakfast venture, the consumer must feel it is worth spending a little extra time out of their morning in your establishment. A few ways to help achieve this is by introducing original menu items with new flavors and packaging, serving a great quality cup of coffee, ensuring a timely speed of service, and overall delivering on the consumer’s breakfast desires and expectations.

 

To read more about tips on how to tackle the breakfast opportunity, click here

 

By Suzette, a Creperie, Opens in Tribeca

By Suzette is a new creperie that actually originated in France and opened recently in Tribeca. The owners, Andy Rodrigues and Guillaume Blanchard met five years ago, while at school in France. The location is small, with a cooking area and a standing counter in the window. By Suzette is open for breakfast, lunch, and dinner.

The crepe recipe comes from Brittany, and there are two types: savory and sweet. Savory ones are made with gluten-free buckwheat flour from Brittany, and you can order from a menu of suggested combinations or build-your-own. Sweet crepes might be filled with Bonne Maman preserves, Creme de Salidou caramel sauce from Brittany, Nutella, chocolate. Delivery will also be offered starting in a week or two. Once the creperie is up and running smoothly, Rodrigues and Blanchard are planning to open additional locations.

Location: 78 Chambers St

HALE AND HEARTY: SINGLE PRODUCT ENTERPRISE

40 East 23rd Street • 212.533.8800

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Their Success

There is no doubt that Hale and Hearty has become a mainstay fast-casual destination in New York City since opening its first location in 1995. The popular chain, known for its variety of soups, also boasts an array of sandwiches and a custom salad bar, appealing to New Yorker’s health conscious and on-the-go lifestyles.

While extremely popular, Hale and Hearty certainly doesn’t fit the mold of the most recent stars of the fast-casual world. There is no advertisement of organic and sustainable ingredients, no trendy menu, or flashy signage. Instead, the Company has made their stores and products accessible for their guests, striking just the right balance of consistency and variety.

Hale and Hearty soups are considered a focal product group. There are 6 staple items on the menu, which are available at any of their 31 NYC locations. Each location will typically offer an additional 12 rotating soup options providing guests with a different selection at every visit but a sense reliability as well. Popular menu staples include Ten Vegetable, Chicken Noodle and Tomato Basil – menu items that are recognizable and familiar to most everyone. Rotating selections include more international flavors and ingredients which give unique options for guests but also allow the company to discontinue if less than successful. Guests are encouraged to try a sample prior to ordering which facilitates even repeat guests to try new items.

The sandwich menu follows a similar model with a larger percentage of staple items and a few that rotate seasonally. The salad bar offers custom ordering with a fixed list of salad toppings and dressings. This gives guests the option for variety but allows for consistency in production. Each Hale and Hearty location is similar in size, layout and organization with consistency in ordering and service. Although rotating menu items might vary per store on any given day, the Hale and Hearty website offers a full menu for each retail location that is updated daily.

Take Aways

Hale and Hearty successfully focuses on a single product group (soup) and offers it in many variations. When considering the product mix of your enterprise, remember who your target guest is and how can provide the most valuable offering both efficiently and effectively. There is no way to please everyone, so stay true to your concept and to your audience.

9th Annual Fast Casual Executive Summit in Denver

The 9th Annual Fast Casual Executive Summit will be held in Denver, Co from October 12-15 at the Four Seasons Hotel. Lon Southerland, senior director, global food and beverage for Marriott International, will be the keynote speakers. The event is designed to bring together the movers and shakers of the of the fast casual industry.

See the agenda and more information here.

Red Mango to Offer Fresh-Squeezed Juices

Red Mango has recently rolled-out fresh-squeezed juices in their stores and co-branded Juice Bars  across the U.S – an attempt to take part in the $5 billion juicing industry. Founder Dan Kim noted that today’s consumer have limited location options for fresh juices such as a health food store or juicing boutique. Red Mango has been looking to offer affordable and high-quality options for years but have recently decided the time is right as juicing is one of the fastest growing segments in the industry.

The fresh-squeezed juices menu at Red Mango will include flavors such as Sweet Green Zing and Cool Pineapple Zen. All juices are squeezed-to-order in front of the customers. Prices range from $2.95 to $5.95.

Panera 2.0: A Digital Ordering Platform

At Panera’s Investor Day, Chairman and CEO Ron Shaich unveiled Panera 2.0 – a digital ordering platform that the Company plans to deploy at all of its locations by 2016. Panera 2.0 has two components:

1)  “Rapid Pick-Up,” which allows guests to order from the Panera website or the new Panera mobile app and then pick-up in-store

2) “Enhanced To-Go and Eat-In” kiosks (enclosed and mounted iPads), that enable the customer to order in-store

The idea is to better serve both take-out and and dine-in customers by making the experience more seamless and efficient. Shaich stated that this is not simply a need for new technology but “an evolution of Panera’s guest experience.” The Company’s vision was digital ordering program that utilizes technology to offer customers an experience that is faster, more accurate, and more personal.

You can read more on Panera 2.0 here at Fastcasual.com